Description of the blog
On Sept. 30, the U.S. Department of Transportation released an interim final rule to revise its Disadvantaged Business Enterprise program.
DOT’s DBE program seeks to assist the formation and growth of small businesses owned by economically disadvantaged individuals, by ensuring that state and local governments establish goals for DBE participation on federally assisted projects.
The final rule ends presumptions of disadvantage based on race or gender that have previously been used by businesses to qualify as DBEs.
This rule is in accordance with the DOT’s proposal in May 2025 to settle a lawsuit challenging the constitutionality of these presumptions in the case Mid-America Milling Co. v. U.S. Department of Transportation.
With these presumptions eliminated, existing DBE firms must be reevaluated and will be able to apply for recertification by demonstrating “individualized proof regarding specific instances of economic hardship, systemic barriers, and denied opportunities that impeded the owner's progress or success.”
The final rule took effect Oct. 3. The DOT is accepting comments on the rule until Nov. 3.
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